[NEWS] MicroStrategy to raise $700 million to buy additional Bitcoin

On the 14th, US intelligence company Micro Strategy announced that it would raise $700 million (approximately 110 billion yen) through a private placement of convertible notes to purchase additional Bitcoin (BTC).

This is an increase from the $500 million (approximately 79 billion yen) announced on the 13th.

According to the company's announcement, the convertible notes, which mature in 2032, will be issued in a private placement to qualified institutional investors. The notes are unsecured, pay interest semi-annually, and can be converted into cash, MicroStrategy Class A common stock, or both.

The company also issued convertible notes in March of this year to raise $600 million (approximately 94.6 billion yen) to purchase Bitcoin.

MicroStrategy is known as a public company that invests in Bitcoin, and on its balance sheet it currently holds more than 214,400 BTC, worth $15 billion (approximately 2.367 trillion yen).

Since 2020, the company has declared its support for Bitcoin and adopted it as its main reserve asset. The average purchase price per BTC is around $35,000 (approximately 5.5 million yen), which is nearly double the trading price of $65,000 (approximately 10.3 million yen) at the time of writing.

MicroStrategy Chairman Micael Saylor claims that "This capital injection shows our confidence that Bitcoin will continue to rise in value over the long term, and we are ready to double down on our investment by putting in even more capital while the price is relatively low."

In addition, Saylor has previously stated that if you do not have the courage to invest in Bitcoin directly, you can get the same effect by investing in MicroStrategy, and he has not changed his bullish view.

Buy more in the Japanese version of MicroStrategy

Metaplanet (Tokyo Stock Exchange Standard), which also operates hotels and investment businesses in Japan, has launched a Bitcoin investment strategy and is said to be the "Japanese version of MicroStrategy."

On the 11th of this month, the company announced that it had purchased an additional $1.6 million (approximately 252.5 million yen) worth of Bitcoin, bringing the company's Bitcoin holdings to 141 BTC. As a result, the stock price rose from 50 yen to over 100 yen at one point following the announcement of the Bitcoin purchase.

Reference:Announcement 1,Announcement 2
Image: Shutterstock

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